There was a time when people thought that the earth was at the center of the universe and that the sun and other planets orbited around it. But over time, people found inconsistencies in this belief and began to not only question them but also use science to foster new ideas and realities.
Back then, controversial views that went against mainstream assumptions or biblical interpretation could mean imprisonment or even death. In fact, Nicholas Copernicus waited until he was on his deathbed to publish his theory that the sun was at the center of the universe despite discovering the concept years earlier.
Fortunately, in our time, challenging the status quo isn’t met with such a harsh reality, however there still seems to be a tendency to hold onto old and outdated ideas. For example: the one-dimensional belief that retirement planning is primarily a financial event with money and insurance at the center of it all.
Fact is, just as Copernicus began to reconfigure the role and positions of the planets, waves of research and studies are also shaking up traditional ideas and concepts in retirement. The new revolution in retirement planning puts an individual’s personal needs and wellbeing at the center, which in turn puts the need to plan for the financial aspects in a new and different orbit.
Like all great scientific discoveries, research plays a key role in validating theories and building new methods and practices. In the case of retirement wellness, none are as important as the Harvard Study of Adult Development. It tracked the lives of over 700 men for some 75 years. The findings from the study provide some of the hard data the industry needs in order to start seeing and doing things differently.
At the very core, the study concludes that people who are more socially connected to family, friends and community are happier, physically healthier and live longer than people who are less well connected. As you might expect, those who are more isolated and have fewer connections are less happy, see their health and brain function decline sooner, and ultimately, they live shorter lives.
But it doesn’t just end there and imply more connections are better. Researchers also found that strong relationships play a role in protecting brain function. Participants who reported feeling “securely attached,” meaning they could count on another person in times of need, had their memories stay sharper for longer, while those in an insecure situation, experienced earlier memory decline.
Talking about the strength of a client’s social network and their brain doesn’t always fit into the traditional data gathering process that advisors use, and even the new fiduciary rule won’t improve that. However, as we seek to do what’s in our clients best interests, we need to begin to examine more than asset allocation, income needs, and behavioral finance… and references to comprehensive or holistic planning need to include aspects of longevity and healthy aging as we embrace the notion that happiness and well-being in retirement are dictated by things such as relationships, mobility and brain functionality, not just dollars and sense.
This is important for advisors because this new era of retirement planning and coaching is changing demographics and social norms. Most notable, the distinction between the haves and have nots. In the past, this group was distinguished by economic means. People with money were the haves and those without, fell into the category of have nots.
Now the game has changed. The haves are people with their health. They have the mobility and functionality to do, see, and be part of things. The have nots are watching from the sidelines, and you guessed it, getting more isolated and end up being less connected than the haves.